Housing.com gets a further Rs 100 cr from Softbank
Housing.com, the embattled online real estate platform, says it has received fresh funding of Rs 100 crore ($15 million) from its largest investor SoftBank Group Corp.
This is the second round of funding Housing.com has received from Japan-based Softbank, after the first round of $100 million in November 2014. Though they did not discuss additional ownership Softbank will receive after the fresh round of investment, it is believed that the first round of investment had given the investor a third control over Housing.com.
Housing.com has so far raised around $170 million (around Rs 1,600 crore) in six rounds since June 2013. Other investors include Nexus Ventures, Falcon Edge, Helion Ventures, Nirvana Ventures, Qualcomm, DST founder Yuri Milner, Viacom 18 co-founder Haresh Chawla, Snapdeal founders Kunal Bahl and Rohit Bansal.
“We are now well-capitalized to aggressively execute on our focused strategy and growth plans and believe 2016 will be a great year for the company,” Jason Kothari, chief executive officer of Housing.com, said.
Housing.com had reported a substantial loss for the year ending March 2015. According to financial statements filed with the Registrar of Companies, it reported a net loss Rs 279 crore, a near six-fold jump from the Rs 49 crore loss reported a year before. Total revenue for 2014-15 was Rs 12.66 crore against Rs 1.91 crore reported for the year before.
After the dismal performance, the company board had fired Rahul Yadav in June 2015 over a public spat with its venture capital investors and hired Kothari as the new CEO in November. In August 2015, media reports suggested that housing.com was laying off around 600 of its 2,600 employees. The company has since also realigned its business strategy that will focus only on buying and selling homes and a sharper focus on revenue generation.
“The company has established a focused strategy on buying and selling homes, the largest and most lucrative segment of the real estate market. With 85 million visits in 2015 and 1.7 (million) verified listings to date, the highest in the market, Housing.com is building scalable revenue streams around its world-class product, market leading demand and supply, and is also going deeper in the value chain towards facilitating and fulfilling transactions,” it said in a statement.